Measuring Economic Health 2 The Gross Domestic Product (GDP) is the summation of several values that give an indication of a country’s economic performance. The cycle of the economy has fluctuations both positive and negative. These are known as recessions and expansions. Using these values, the GDP can give a basic measure of the status of the economy. An example of how the GDP uses these values as an indicator is in determining whether or not a country is in a recession. Two consecutive quarters of a decline in the GDP is usually indicative of a recession. According to Sheffrin, fiscal policy is the use of government spending and revenue collection to influence the economy. Fiscal policy is determined and regulated by many government bodies. These include: the Office of the Treasury, Office of Management and Budget, Office of the President of the United States, and the Government Accountability Office. Each branch presides over a different aspect of regulating fiscal policy.

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